Is Everything About The Cryptocurrency Manipulation Of The Most Powerful People Or Is It a New Technological Revolution?

in #cryptocurrency7 years ago

At the end of this post, you have my prediction for the growth of crypts.

Two years ago, Bitcoin was considered a fringe technology for libertarians and computer geeks. Now, Bitcoin and other cryptocurrencies, such as Ethereum, are gaining mainstream adoption. However, mainstream adoption has been propelled by financial speculation instead of by demand for a privately minted and deflationary medium of exchange. After the Fed’s rate hike this week, Bitcoin and alternative cryptocurrencies, such as Ethereum and Dash dropped in value instantly. Bitcoin, for example, dropped by approximately 16% in value while other coins dropped by approximately 25%.

The reaction of the cryptomarket to the Federal Reserve announcement provides evidence that cryptocurrencies are seen as a safe-haven investment during times of significant fiat currency. I demand for Bitcoin is going up in countries that are demonetizing their fiat currencies, such as India and Venezuela. Following the demonetization of the 500 and 1,000 rupee banknotes in November of last year, the price of Bitcoin on India’s largest Bitcoin exchange, Unocoin, shot up to $818 while American exchanges quoted the exchange rate as $709 per Bitcoin. Similarly, Surbitcoin, Venezuela’s largest Bitcoin exchange, saw an increase from 450 accounts in 2014 to over 85,000 in 2016.

However, if the Fed continues to raise rates, then the demand for cryptocurrency may decrease. When the Fed closes the faucet on newly printed money, there is less newly printed money that can flow into asset classes such as real estate, stocks, and cryptocurrencies, etc. Therefore, investors will have less demand for assets that hedge against inflation.

Contrary to popular belief that Bitcoin is deflationary, the currency currently has an annual inflation rate of approximately 4%. The reason that Bitcoin allows investors to hedge the expansionary monetary policies adhered to by central banks is because the demand for Bitcoin is growing at a pace that is higher than the increase in the supply of Bitcoin.

Satoshi modeled the flow of new Bitcoin as a Poisson process, which will result in a discernible inflation rate compared to the stock of existing Bitcoin by 2020. Every four years, the amount of Bitcoin minted annually is halved. The last programmed “halving” occurred in June of 2016. Therefore, the next halving will occur in 2020. The inverse of the inflation rate, the StFR, also indicates the decreasing flow of newly minted coins into the Bitcoin economy. The stock to flow ratio (StFR) of Bitcoin is currently 25 years; however, the StFR ratio will increase to approximately 56 years. This means that the StFR of Bitcoin should surpass gold’s during the next five years. Prior to January 3, 2009, no Bitcoin existed. Therefore, Bitcoin’s StFR was effectively zero. However, the rapid reduction in the amount of Bitcoin mining over time results in an increasing StFR over time. By 2024, only 3.125 Bitcoin will be mined every ten minutes resulting in a StFR of approximately 119 years.

If the new meaning of inflation is applied, then Bitcoin is deflationary because the purchasing power of each unit increases overtime.

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Bitcoin in 2014, a Model S Tesla worth $70,000 cost 230 Bitcoin. Today, a Model S Tesla worth $70,000 costs 18 Bitcoin. On June 11 of this year, the price of Bitcoin reached a new all-time high above $3,000 after trading at approximately $2,300 two weeks ago. Furthermore, Bitcoin’s market capitalization of $40 billion is expected to rise further as the uncertainty surrounding this technology decreases. Bitcoin’s price data only covers the past six years, which means there is basically no data available for statistical analysis. Today BTC is $ 4000.

People prefer outcomes with known probability distributions compared to outcomes where the probabilities are unknown. The estimation error associated with forecasts of Bitcoin’s risks and returns may be negatively biasing the price downward. As time passes, people will become more “experienced” with Bitcoin, which may reduce uncertainty and the subsequent discount it wields on the price of Bitcoin.

An economic downturn occurs approximately once every ten years in the US, and it has been a decade since the 2007/2008 financial meltdown. If the economy cannot handle the increase in rates, and the Fed is forced to reverse their decision, the price of Bitcoin and other cryptocurrencies are likely to respond positively. Although the cryptocurrency market took a steep plunge after Janet Yellen’s second rate hike of 2017, prices fully recovered within a day. The quick rebound underscores the lack of assets that allow investors to accumulate wealth safely. Negative interest rates in Europe and fiat demonetization in developing countries are still driving demand for Bitcoin and alternative cryptocurrencies. Although Bitcoin was initially ridiculed as money for computer nerds and a conduit for illegal activity, investors are beginning to see the potential for this technology to be an integral part of wealth management from the perspective of portfolio diversification.

The President of the Deutsche Bundesbank Has Some Ideas on How To Stop Cryptocurrencies.

As cryptocurrencies, which trade outside the banking system, attract more capital, governments and central banks are devising ways to try and stop and or control their rise.

In “Cryptocurrencies Fiat Killers or Strengtheners” we noted how some Ethereum projects aim to make blockchain assets spendable through the banking system via connecting them to Visa and Mastercard.

In “Bill Would Require a Declaration of Digital Currency Holdings at the Border” we noted that the US Congress has tasked the U.S. Secretary of Homeland Security and Commissioner of U.S. Customs and Border Protection to devise a plan to stop the flows of cryptocurrencies into the country.

At the Bundesbank Policy Symposium, in a speech entitled “Frontiers in Central Banking – Past, Present and Future” Dr Jens Weidmann, President of the Deutsche Bundesbank and Chairman of the Board of Directors of the Bank for International Settlements gave a speech outlining some ideas on how to best address the challenges that cryptocurrencies pose to central banks.

The Plan

After explaining that central banks are creatures born of crisis in that they are designed to come to the rescue when there are financial crisis, Dr. Weidman, noted that market interventions by central banks often provide financial stability, but not with out creating additional risks.

Towards the end of his speech, Dr. Weidman remarked that policy intervention may be required, not to address a crisis, but to address technology. Digitalization has the potential to provide financial benefits to the economy, with the risk, however, of disintermediating central banks. As such, the ability of central banks to conduct monetary policy diminishes proportionally to the increase in digitalization.

Dr. Weidman dismisses the notion that privately issued digital currencies may eliminate central bank currencies, reasoning that “central banks are better able to deliver price stability than a rigid monetary rule or an algorithm.”

Therefore, one consideration might be that the central banks themselves would issue their own digital currencies- something that the central banks of Russia and China are considering. If central banks created digital currencies it would make those holding their liquid assets in the form of central bank digital currencies safer from bank solvency issues and the public would have greater protection because “central banks cannot become insolvent.”

Dr. Weidman notes that in times of crisis, money holders would withdraw their bank deposits and transfer them into the official digital currency, thereby rapidly withdrawing liquidity from the private banking sector in a digital bank run.

Weidman’s Conclusion

“My personal take on this is that central banks should strive to make existing payment systems more efficient and still faster than they already are – instant payment is the buzzword here. I am pretty confident that this will reduce most citizens’ interest in digital currencies.”

Be Rich working with Cryprocurrencies - Best strategies

Best Investment strategies in crypto on Stock exchange... Part 1

There are various predictions, a large number of strategies and of course strong lobbies that promote certain crypts, and it is not easy to predict how much and when it will grow. No one can guarantee you a 100% growth of a currency, but what I will show you is a strategy that will bring you money regardless of stock market speculation ...

I would invest my investments into short-term, medium-term and long-term, and I will give each of them an explanation ...

Short-term investments relate to daily trading on the stock exchange. It's not crucial that you invest in a crypt, but in this option you need a permanent presence. Because within a few minutes big changes can happen.
There are here, apart from your intuition, knowledge about a particular crypt and the crucial factor, and whether you are on the main or on the stock exchange for the currency you are trading with at that moment? If you are on the main stock exchange then it's ok but the changes are very fast, and you need to have the food to sell when the money falls, and you buy when you're skipping, of course it takes a bit of experience and feeling ...

If you're on the stock market it's better for me Option, because you can also see when the money is falling (you have the time to sell it because the trades are smaller on the stock market). And when money grows, you have time to wait for it to grow even more. With the stock exchange you get on time ...

Everything is up to the ladder and Patience. If you lose money ok, everyone happens, but you should keep in mind that if you invested money, you should get off with a minimum of 2% of profits in one day. The average salary is from 3 to 7% ... daily, but top brokers ...
If you have not earned today, you should bear in mind the goal of having a minimum of 14% of your salary in 7 days. Focus on the goal, listen to your feel-in, be prepared for a fall and a jump of money.

The medium term refers to the period between 2 and 5 months.
In this type of investment, a deeper analytic is needed, which is the money I want to invest in, who is behind it, what is the turnover, what world experts say, etc.

It is also important that there are two types of investments - a. In the money that is known (
Known money for me is BTC, ETC, RIPPLE, MONERO, LTC, ETH ... etc.) and strong and b. In the money that has the potential to return from the dead. Here, you need to invest in both options 50-50%, but before each investment, look at the good money or money you invest ... Dead money always has a higher growth potential, but even greater risk. If it starts from the bottom, growth can be 1000-5000%, while the famouse money can hardly have that level of growth. We have another option, and that's the new money that is being advertised. Let's say Steem is innovative with these blogs and in that way has a very strong campaign that will strengthen over time with every post, and a new member ...

Long-term investments relate to a period of 6 months, as long as you want ...
This form of investment would be divided into two groups. To invest in a stable and well-known money, and in money that has great potential to enter that ring circuit ...

Best Investment strategies in crypto on Stock exchange - Part 2

When you consider that the number of crypts increases, the choice is increasing and it is more difficult to choose those winning crypts. Most people define for those old known and proven currencies BTC, ETH, LTC, ETC, XMR, RIPPLE ITD ..

New crypts are not for throwing, you need to choose those that have good and unique marketing. If everything is the same then I do not want to invest in monotonous crypts, I want to invest in those that offer something different - Kingburger - eat sandwiches and make money in their crypts - a really challenging campaign - win-win get users and get the owners ... This money has a huge A perspective for two reasons: 1. Because behind it stands the famous brand 2. Because you will be able to buy food in their restaurants with him.

We need to identify trends, choose the money of strong brands, but not the same. The fact that someone has a strong company does not mean by itself that the crypt will be strong. It depends on how much money is in production, how much of its use value (where you can buy it with that crypt), how much is it asked on the market.
My choice is a combination of 3 types of cryptowood:

Those old and recognizable "Adam and Eve" crypts
New and challenging crypts with excellent marketing (viral marketing)
Those who have the strength to return from the bottom to the top
Pay attention to whoever promotes the crypt that interests you, the credibility of people who talk about cryptography is very important.

I believe that I have fulfilled your expectations, this is just the basis on which I earned $ 40 - 80 BTC for 8 months ... I use over strategies and feel free to ask for advice I am at your disposal. Every new idea or viewing angle is rejoicing, because I like to learn something new ...

Prediction for the growth of crypts by 1 December - 90 days - Part 3

I want to anticipate how many of the strongest cryptoids will jump in within 90 days. The prediction is based on the experience, data and use value of the money itself, as well as the movement of these money on the stock exchange.

BTC - Bitcoin
Bitcoin is the currency that is the first one that is accepted everywhere in the world, with which you can buy many services and products. On the other hand, all stock exchanges are working and compared with Bitcoin.

Total production of Bitcoin is 21 million, at the moment there are more than 16 million in circulation. The code is so designed that the production of the remaining 5 million Bitcoin will take another 100 years.

It's money that represents Adam and Eve in this world of new money.

It will cost up to December 1 between $ 8-13 000

LTC - Litecoin
Total production is 84 million, in circulation it is 52 million and 750 thousand.

Its current value is about $ 80 - worth by December 1 between $ 250-350

Currently, it has 94 million in circulation - its current value is $ 355 and it is worth up to 1 December between $ 700-1200
XMR - Monero currently has a circulation of 15 million, its value is $ 130, its value by December will be between $ 350 and $500

XRP - Ripple Currently it has 34 billion and 348 million in circulation, the total production is 100 billion, the current value is $ 0.23, it will be worth between $ 0.5 and $ 1.2 by the first December.

Dash - Currently, it has 7.5 million in circulation, its total production is 18.9 million, its current value is $ 362, it will be worth between $ 600 and $ 1150 in December

As for the money that has a small turnover and the great potential--- they are great for investments ...

A - Dimecoin (I expect a jump of between 500-800% compared to Bitcoin)
B - POSWCoin (I expect a jump of between 200-300% compared to Bitcoin)
C- Yocoin (I expect a jump of between 150-250% compared to Bitcoin)

Good luck with investments, we will see you on December 1st with concrete results and a comparison of predictions ...

From Heart
Dr. Great Success

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